Full Version: Another Pricing Query

From: Doc (GREAT_ATLANTIC) [#13]
 3 Mar 2007
To: Stunt Engraver (DGL) [#12] 3 Mar 2007

David, I don't disagree with what you say about Internet pricing. It forces all of us who have an online component to lower our prices if we choose to remain competitive in that market, and often affects our in-store pricing too. But everything has to be kept in perspective, and discounting is simply one element of the entire picture.

We grabbed an order for 150 pieces of high-end, engraved crystal from a retailer that has great powder-blue boxes and a ribbon by cutting their prices in half. The client had been with this supplier for more than 10 years believing they were the only game in town. And even after halving the delivered price, we still gross 4-times our cost of the glass.

In the case of these plaques, I agree with Mike that the pricing seems rather high - simply based on we know to be typical pricing for the same item in the US, not just on the Internet. While laser engraving may very well be scarce in that part of the World, it certainly isn't everywhere. And unless Rob's client is completely insulated from the web, eventually they might question such a high premium for this "unique" service. Better to come a bit closer to reality than risk having this become a one-shot partnership.

Rob's costs are certainly very different than ours in the States, but he'll still have to decide on what the market will bear regardless of his costs. Just for comparison sake, here's our pricing (...but no worries, Rob - we don't ship internationally :B )

Laser Engraved Economy Plaques

From: Rob Mc (ROBMC) [#14]
 4 Mar 2007
To: ALL

Thanks guys, I love a healthy debate, I'd like to start my pricing by making a decent profit, We've been open since 1985 not engraving obviously!,
I guess my €47.00 is a bit on the high side but our sales tax is also @ 21% so the 47 less the 21% brings me down to 38.80 which for single plaque including the design is I reckon on the money for a fair price for a single item.

My costs/options for supplies are quite limited, Sterling is so expensve and shipping from the US also expensive.

At least I can now approach a few quotes with some decent suggestions to get my pricing fair but without being a busy fool,

Rob

From: Peter [#15]
 4 Mar 2007
To: Rob Mc (ROBMC) [#14] 4 Mar 2007

Hi Rob,

Keep up the good fight mate !

dont lower your standards or your prices, carve your market based on quality and service...

Then charge justifiably for it !

regards

Peter

From: Swami [#16]
 4 Mar 2007
To: ALL

I think Rob should stick with his price, Onle he would know the difficulty in aquiring the products, Import duty, high shipping costs etc...

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